Buying a first home is often fraught with uncertainty and stress. The home buying process may be made easier and less stressful with these tips for first time home buyers.
1. Don't Stretch Your Budget:
Figure out how much you are able to comfortably afford before looking for a home. A $1000 a month rent payment does not mean you are able to afford the same mortgage payment. Owning a home has increased costs over renting. Taxes, insurance and unforeseen maintenance costs will add up to higher expenses. Consider all of these factors when deciding on a home budget. A mortgage calculator will help determine these costs.
2. Find A Reputable, Seasoned Real Estate Broker:
A reputable real estate broker will help a prospective buyer find the perfect home. Good real estate agents know the local marketplace and whether the house is for sale at a good price. They will be aware of what is available and how much is a fair price for the amenities within the home. Seasoned real estate brokers will help walk the home buyer through the negotiating process to ensure the best possible purchase price.
3. Obtain Mortgage Pre-approval:
Have financing in place before stepping foot into any home. Pre-approval is different from being pre-qualified. Pre-approval means financing up to a set amount is guaranteed by the lender. Pre-approval letters from a mortgage company offer the buyer an advantage in the negotiating point of the home purchase. Potential buyers will be able to show they are serious and have funding in place. This allows them leverage over another potential buyer who does not have mortgage pre-approval.
4. Have A Home Inspection:
Home inspections are a vital part of purchasing a property. A good inspector will look for a variety of issues to help determine if there are any problems within the home. Issues found by an inspector will allow the buyer the ability to renegotiate price. Buyers may walk away from the house if severe issues are discovered and they do not feel capable of dealing with the problems, and the seller isn't willing to fix problems found by the home inspection.
5. Remember Closing Costs:
First time home buyers need to remember closing costs. These fees typically range from two to four percent of the total loan amount. Closing costs depend on how many points the lender is charging for the loan. Buyers can sometimes negotiate closing costs with the seller paying some or all of these fees. Use a closing cost calculator to help determine your closing costs.
6. Save Some Money for Home Repairs:
Sure, putting a big down payment on your new home is a good thing. But have you thought about home repairs? It is not smart to put all of your money into your down payment, or to use the rest to make improvements. Surprises abound for first-time home buyers who may not be aware of all the ways their new home can swallow their money. Gone are the days when many homeowners could dip into their equity to replace a roof or septic system. Be proactive and keep some savings aside for unexpected home repairs, even if the inspection came up clean.
Talk to us about buying your first home. We are experienced in all these areas and can help you make the first home buying experience enjoyable, not a nightmare.
Source: longislandrealestate4buyers.com/
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Best Buyer’s Broker Realty is an Exclusive Buyer Agent specializing in Long Island real estate (Nassau and Suffolk properties) and neighbouring Queens County properties.
We don’t take any seller listings (yet we have more homes for you to see than most agents) and never have any potential conflict of interest like other agents who also represent sellers. We represent buyers only, 100% of the time. We can show you more homes for sale because we have access to MLS, FSBOs, Exclusives (homes that agents try to keep secret), foreclosures and homes not on the market that may be of interest to you.
We are not your traditional real estate agent. Our goal is to advise and protect home buyers and help them obtain the lowest price and best terms on their dream home. Call us at 516-887-6901 to see how we can help you save time and money. Or visit our sites at http://bestbuyersbroker.com or http://bestbuyerbroker.com
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